Revenue Beat: Jindal Steel Limited Beat Analyst Estimates By 5.1%
Last week, you might have seen that Jindal Steel Limited (NSE:JINDALSTEL) released its half-year result to the market. The early response was not positive, with shares down 2.5% to ₹1,016 in the past week. It was a workmanlike result, with revenues of ₹322b coming in 5.1% ahead of expectations, and statutory earnings per share of ₹33.16, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Jindal Steel from 31 analysts is for revenues of ₹705.7b in 2027. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 94% to ₹54.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹692.6b and earnings per share (EPS) of ₹56.32 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for Jindal Steel
The consensus price target held steady at ₹1,222, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Jindal Steel at ₹1,400 per share, while the most bearish prices it at ₹620. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Jindal Steel's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 0.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jindal Steel to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jindal Steel. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Jindal Steel going out to 2029, and you can see them free on our platform here.
You can also see whether Jindal Steel is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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